US-Canada trade relations

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The United States and Canada have the largest and most comprehensive trade relationship in the world.^[1] In 2006, total merchandise trade between the two countries consisted of $303.4 billion in imports and $230.3 billion in exports.^{[citation needed]} The trade relationship between the two countries crosses all industries and is vital to both nations’ success. Each country is the largest trade partner of the other. The trade across Ambassador Bridge between Windsor Ontario, Ontario and Detroit, Michigan alone is equal to all the trade between the United States and Japan.^[2][3]

Contents 1 Trade Before NAFTA 2 North American Free Trade Agreement 3 Disputes 4 Proposals 5 See also 6 References

[edit] Trade Before NAFTA

Since 1866, free trade has been debated topic by Canadian politicians.^{[citation needed]} Free trade was generally supported by the Liberal Party of Canada, and was a main topic in the 1911 Canadian Federal Election.^{[citation needed]} After the Liberals lost that election, the topic was a non-issue for many years. Although there were many bilateral agreements reducing tariffs, a free trade agreement was not reached until the Canada-United States Free Trade Agreement in 1988. The agreement intended to promote a free market between the two nations, and encourage investments within that market.^[4]

[edit] North American Free Trade Agreement

The Canada-United States Free Trade Agreement laid the groundwork for a multilateral agreement between, the United States, Mexico, and Canada, called the North American Free Trade Agreement. NAFTA has helped fuel the relations between the three nations. Although there are some discrepancies between the countries’ especially in the area of automobiles and agriculture, the trends are negligible as the agreement has arguably been a boon for all nations involved.^[5]

[edit] Disputes

There are several disputes arising from the bilateral trade between the two nations. The United States has placed Canada on its Special 301 watch list over intellectual property rights enforcement (although under the mildest category of "rebuke"). Other products from Canada under dispute include softwood lumber, beef, tomatoes, and other agricultural products.^[6]

The heightened border security as a result of the 2001 terrorist attacks has been an issue of concern for businesses in both countries. The Issue has become less of a concern as technology, registration, training, and fewer rules. However a midpoint estimate of US $10.5 billion cost to businesses in delays and uncertain travel time.^[7]

One ongoing and complex trade issue involves the importation of cheaper prescription drugs from Canada to the United States. Due to the Canadian government's price controls as part of their state-run medical system, prices for prescription drugs can be a fraction of the price paid by consumers in the unregulated U.S. market. While laws in the United States have been passed at the national level against such sales, specific state and local governments have passed their own legislation to allow the trade to continue. American drug companies—often supporters of political campaigns—have obviously come out against the practice.

According to a 2003 study commissioned by the Canadian Embassy in the United States, based on 2001 data, Canada–U.S. trade supported 5.2 million U.S. jobs.

U.S. State	U.S. Jobs Supported	Rank
Alabama	72,000	24
Alaska	13,000	48
Arizona	89,000	22
Arkansas	45,000	32
California	626,000	1
Colorado	93,000	21
Connecticut	67,000	27
Delaware	16,000	46
District of Columbia	29,000	38
Florida	289,000	4
Georgia	152,000	10
Hawaii	26,000	39
Idaho	23,000	43
Illinois	237,000	5
Indiana	112,000	14
Iowa	55,000	30
Kansas	51,000	31
Kentucky	69,000	26
Louisiana	73,000	23
Maine	24,000	41
Maryland	101,000	20
Massachusetts	134,000	13
Michigan	174,000	8
Minnesota	103,000	19
Mississippi	43,000	34
Missouri	108,000	16
Montana	16,000	45
Nebraska	36,000	36
Nevada	43,000	35
New Hampshire	24,000	42
New Jersey	153,000	9
New Mexico	30,000	37
New York	348,000	3
North Carolina	151,000	11
North Dakota	13,000	49
Ohio	212,000	7
Oklahoma	58,000	29
Oregon	63,000	28
Pennsylvania	219,000	6
Rhode Island	19,000	44
South Carolina	69,000	25
South Dakota	15,000	47
Tennessee	108,000	15
Texas	369,000	2
Utah	44,000	33
Vermont	12,000	50
Virginia	141,000	12
Washington	108,000	17
West Virginia	25,000	40
Wisconsin	103,000	18
Wyoming	9,000	51
Total	5,210,000

http://www.canadianembassy.org/2005map/2005_map_front.pdf http://www.canadianally.com

[edit] Proposals

Since the September 11th attacks, there has been debate on whether there should be further North American integration. Some have proposed the adoption of the Amero under the North American Currency Union as the official currency of North America.^{[citation needed]} While these discussions are more prevalent in Canada, studies have shown that United States citizens would not object to economic integration. According to Former U.S. Ambassador Paul Cellucci however, “Security trumps trade” in the United States, and so as long as Canada is considered a possible point of entry for terrorists, such integration seems unfeasible.^[8]

[edit] See also

• NAFTA's Impact on US Employment
• North American Forum on Integration
• North American SuperCorridor Coalition
• Security and Prosperity Partnership of North America
• Canada-United States relations

[edit] References